Safaricom is set to partner with Kenyan fintech, Pezesha, as it rolls out a new credit facility for small business owners. This is according to TechCabal citing Safaricom’s updated product’s terms and conditions page. The feature is already available on the M-Pesa app as ‘Mkopo wa Pochi’ under ‘Financial Services’.
Mkopo wa Pochi loans will have a 7-day term with a one-time access fee of 2.76% of the borrowed amount. There will be an option to extend the loan for 7 days and this will attract a fee of 3.85% for the entire 14-day period. Late payments will attract a daily penalty of 1% for a maximum of 7 days.
Safaricom’s Pochi la Biashara currently has over 632,000 active merchants and has processed over Ksh 73 billion in transactions. The service generated over Ksh 800 million in revenue between March 2023 and March 2024.
Pezesha brings its expertise in digital lending to this partnership. “Pezesha may make a credit assessment after considering information from various sources, including but not limited to your business transaction history with Safaricom, your mobile money account transaction history, your credit information from the Credit Reference Bureau, your history of use of the product and prevailing market conditions,” reads part of Safaricom’s updated product terms and conditions page.
Read: Pezesha Receives $500,000 Technical Assistance Grant from US Development Finance Corporation
